MFI
Short Questions
1. Insurable Interest 26. Trade based Money Laundering
2. False Positive 27. Market Risk
3. STR and SAR 28. Shell Bank
4. Reverse Repo 29. Collateral Security
5. CDD 30. Core Capital
6. IP and PEPS 31. Legacy Accounts
7. Crytpto Currency 32. Funded and Non-Funded Loans
8. Reputational Risk 33. Beneficial Owner
9. Positive Pay 34. Mutual Evaluation
10. Stress Testing 36.Influential Person
11. RTGS 37.Self Assessment Report
12. off-Shore Banking 38.Bangladesh Automated Clearing House
13. NPSB 39. APG , FATF
14. Agent Banking 40. Early Warning Systems
15. Bank Rate 42. Personal banking Division
16. Duration and Option 43. Corresponding Banking
17. Interest Rate Spread 44. Money laundering risk and APG Team
18. Set off and Lien
19. CTR and STR
20. Capital Adequacy Ratio
21. BFIU
22. Credit Documents
23. BASEL-III
24. Net and Gross VAR
25. SMS Banking
Important question
Bangladesh Bank
1. Role of Bangladesh bank/Central bank
2. Importance of Bank
3. Prospects of Islamic Banking
4.
Commercial Bank & NBFI
1. Commercial bank vs. Non-bank FI
2. Credit Risk of Commercial Bank
3. Function of Commercial bank
4. Functions of NBFI
5. Importance of NBFI
6. Services of Commercial banking
7. Commercial Bank vs. Specialized Bank
Money laundering
1. Various methods and ways of ML
2. Consequence of ML
3. Steps of ML
CAMELS
4. Components of CAMELS
5. Functions and responsibilities of BAMLCO
6. Measure of Financial soundness as per CAMELS
, 7. Various risk of commercial bank judged through CAMELS rating
Investment banking:
1. Function of Investment Bank
2.
BFUI
1. Functions and Responsibilities
2.
Green Banking
1. Importance of Green banking
2.
SME Financing
1. Features of SME
2. Importance of SME
3. Products of SME by Various bank
Islamic Banking
1. Deposit and Loan components of Islamic banking
2. AD ratio is different for Islamic Banking
Others
1. Branch Banking vs Unit Banking
2. E-Commerce vs. Green Banking
3. Services provide by Agent Banking
4. Features of BASEL_III
5. Importance of Loan Securitization
6. Loan classification and Provisioning
7. Savings Account Vs. Current account
8. Mobile Financial Services Vs. Agent Banking
9. Components of Tier-1 , Tier-2 according to BASEL-1
10. Islamic Banking vs. Traditional Banking
11. Components of market Risk
8. Insurable Interest
Insurable interest is an essential requirement for issuing an insurance policy that makes the entity or
event legal, valid and protected against intentionally harmful acts. People not subject to financial loss
do not have an insurable interest. Therefore a person or entity cannot purchase an insurance policy to
cover themselves if they are not actually subject to the risk of financial loss. Insurable interest is a
type of investment that protects anything subject to a financial loss. A person or entity has an
insurable interest in an item, event or action when the damage or loss of the object would cause a
financial loss or other hardships.
9. False Positive
A false positive is an error in binary classification in which a test result incorrectly indicates the
presence of a condition such as a disease when the disease is not present, while a false negative is the
opposite error where the test result incorrectly fails to indicate the presence of a condition when it is
present. These are the two kinds of errors in a binary test, in contrast to the two kinds of correct result
(a true positive and a true negative.) They are also known in medicine as a false positive (or false
negative) diagnosis, and in statistical classification as a false positive (or false negative) error.[1]
10. STR and SAR
If, during the establishment or course of the customer relationship, or when conducting occasional
transactions, a reporting entity suspects that transactions related to money laundering or terrorist
financing, then the entity should:
, -Normally seek to identify and verify the identity of the customer and the beneficial owner, whether
permanent or occasional, and irrespective of any exemption or any designated threshold that might
otherwise apply; and
- Make a STR to the FIU in accordance with the Money Laundering & Terrorism (Prevention)
Act, 2008 Section 17 (1)(a).
If a reporting entity suspects or has reasonable grounds to suspect that funds are the proceeds of a
criminal activity, or are related to terrorist financing, it shall as soon as possible but no later than 3
days report promptly its suspicions to the Financial Intelligence Unit (FIU).
A Suspicious Activity Report (SAR) is a document that financial institutions, and those associated
with their business, must file with the Financial Crimes Enforcement Network (FinCEN) whenever
there is a suspected case of money laundering or fraud.
Identification of STR/SAR may be started identifying unusual transaction and activity. Such unusual
transaction may be unusual in terms of complexity of transaction, nature of transaction,
volume of transaction, time of transaction etc. Generally the detection of something unusual
may be sourced as follows: Comparing the KYC profile, if any inconsistency is found and
there is no reasonable explanation; By monitoring customer transactions; By using red flag
indicators.
11. Reverse Repo
The repurchase agreement (repo or RP) and the reverse repo agreement (RRP) are two key tools used
by many large financial institutions, banks, and some businesses. These short-term agreements
provide temporary lending opportunities that help to fund ongoing operations.
Repurchase agreements, or repos, are a form of short-term borrowing used in the money markets,
involving the purchase of securities with the agreement to sell them back at a specific date, usually for
a higher price.
A repurchase agreement (RP) is a short-term loan where both parties agree to the sale and future
repurchase of assets within a specified contract period. The seller sells a Treasury bill or other
government security with a promise to buy it back at a specific date and at a price that includes an
interest payment.
A reverse repurchase agreement (RRP) is an act of buying securities with the intention of returning—
reselling—those same assets back in the future at a profit. This process is the opposite side of the coin
to the repurchase agreement. To the party selling the security with the agreement to buy it back, it is a
repurchase agreement. To the party buying the security and agreeing to sell it back, it is a reverse
repurchase agreement. The reverse repo is the final step in the repurchase agreement closing the
contract.
12. CDD
Customer Due Diligence or CDD, is the process where relevant information about the customer is
collected and evaluated for any potential risk for the organization or money laundering/terrorist
financing activities.
CDD is essential for KYC, and although these processes differ around the globe, they have a single
aim—to identify your customer and their activities. Then customer’s risk profile is assessed and
followed by basic Customer Due Diligence, Enhanced Due Diligence (EDD) or Simplified Due
Diligence (SDD)
The financial system processes millions of transactions every day so it is vital for your firm to ‘Know
Your Customer’. KYC or Customer Due Diligence (CDD) collates information about your customers
to assess the extent of any risk they pose to the firm. This doesn’t simply mean taking a copy of a
passport to prove identity, it means analysing the customer lifecycle from onboarding through to
recognising key changes over time and undertaking regular reviews.
13. IP and PEPS
a politically exposed person (PEP) is one who has been entrusted with a prominent public function.
A PEP generally presents a higher risk for potential involvement in bribery and corruption by virtue
Short Questions
1. Insurable Interest 26. Trade based Money Laundering
2. False Positive 27. Market Risk
3. STR and SAR 28. Shell Bank
4. Reverse Repo 29. Collateral Security
5. CDD 30. Core Capital
6. IP and PEPS 31. Legacy Accounts
7. Crytpto Currency 32. Funded and Non-Funded Loans
8. Reputational Risk 33. Beneficial Owner
9. Positive Pay 34. Mutual Evaluation
10. Stress Testing 36.Influential Person
11. RTGS 37.Self Assessment Report
12. off-Shore Banking 38.Bangladesh Automated Clearing House
13. NPSB 39. APG , FATF
14. Agent Banking 40. Early Warning Systems
15. Bank Rate 42. Personal banking Division
16. Duration and Option 43. Corresponding Banking
17. Interest Rate Spread 44. Money laundering risk and APG Team
18. Set off and Lien
19. CTR and STR
20. Capital Adequacy Ratio
21. BFIU
22. Credit Documents
23. BASEL-III
24. Net and Gross VAR
25. SMS Banking
Important question
Bangladesh Bank
1. Role of Bangladesh bank/Central bank
2. Importance of Bank
3. Prospects of Islamic Banking
4.
Commercial Bank & NBFI
1. Commercial bank vs. Non-bank FI
2. Credit Risk of Commercial Bank
3. Function of Commercial bank
4. Functions of NBFI
5. Importance of NBFI
6. Services of Commercial banking
7. Commercial Bank vs. Specialized Bank
Money laundering
1. Various methods and ways of ML
2. Consequence of ML
3. Steps of ML
CAMELS
4. Components of CAMELS
5. Functions and responsibilities of BAMLCO
6. Measure of Financial soundness as per CAMELS
, 7. Various risk of commercial bank judged through CAMELS rating
Investment banking:
1. Function of Investment Bank
2.
BFUI
1. Functions and Responsibilities
2.
Green Banking
1. Importance of Green banking
2.
SME Financing
1. Features of SME
2. Importance of SME
3. Products of SME by Various bank
Islamic Banking
1. Deposit and Loan components of Islamic banking
2. AD ratio is different for Islamic Banking
Others
1. Branch Banking vs Unit Banking
2. E-Commerce vs. Green Banking
3. Services provide by Agent Banking
4. Features of BASEL_III
5. Importance of Loan Securitization
6. Loan classification and Provisioning
7. Savings Account Vs. Current account
8. Mobile Financial Services Vs. Agent Banking
9. Components of Tier-1 , Tier-2 according to BASEL-1
10. Islamic Banking vs. Traditional Banking
11. Components of market Risk
8. Insurable Interest
Insurable interest is an essential requirement for issuing an insurance policy that makes the entity or
event legal, valid and protected against intentionally harmful acts. People not subject to financial loss
do not have an insurable interest. Therefore a person or entity cannot purchase an insurance policy to
cover themselves if they are not actually subject to the risk of financial loss. Insurable interest is a
type of investment that protects anything subject to a financial loss. A person or entity has an
insurable interest in an item, event or action when the damage or loss of the object would cause a
financial loss or other hardships.
9. False Positive
A false positive is an error in binary classification in which a test result incorrectly indicates the
presence of a condition such as a disease when the disease is not present, while a false negative is the
opposite error where the test result incorrectly fails to indicate the presence of a condition when it is
present. These are the two kinds of errors in a binary test, in contrast to the two kinds of correct result
(a true positive and a true negative.) They are also known in medicine as a false positive (or false
negative) diagnosis, and in statistical classification as a false positive (or false negative) error.[1]
10. STR and SAR
If, during the establishment or course of the customer relationship, or when conducting occasional
transactions, a reporting entity suspects that transactions related to money laundering or terrorist
financing, then the entity should:
, -Normally seek to identify and verify the identity of the customer and the beneficial owner, whether
permanent or occasional, and irrespective of any exemption or any designated threshold that might
otherwise apply; and
- Make a STR to the FIU in accordance with the Money Laundering & Terrorism (Prevention)
Act, 2008 Section 17 (1)(a).
If a reporting entity suspects or has reasonable grounds to suspect that funds are the proceeds of a
criminal activity, or are related to terrorist financing, it shall as soon as possible but no later than 3
days report promptly its suspicions to the Financial Intelligence Unit (FIU).
A Suspicious Activity Report (SAR) is a document that financial institutions, and those associated
with their business, must file with the Financial Crimes Enforcement Network (FinCEN) whenever
there is a suspected case of money laundering or fraud.
Identification of STR/SAR may be started identifying unusual transaction and activity. Such unusual
transaction may be unusual in terms of complexity of transaction, nature of transaction,
volume of transaction, time of transaction etc. Generally the detection of something unusual
may be sourced as follows: Comparing the KYC profile, if any inconsistency is found and
there is no reasonable explanation; By monitoring customer transactions; By using red flag
indicators.
11. Reverse Repo
The repurchase agreement (repo or RP) and the reverse repo agreement (RRP) are two key tools used
by many large financial institutions, banks, and some businesses. These short-term agreements
provide temporary lending opportunities that help to fund ongoing operations.
Repurchase agreements, or repos, are a form of short-term borrowing used in the money markets,
involving the purchase of securities with the agreement to sell them back at a specific date, usually for
a higher price.
A repurchase agreement (RP) is a short-term loan where both parties agree to the sale and future
repurchase of assets within a specified contract period. The seller sells a Treasury bill or other
government security with a promise to buy it back at a specific date and at a price that includes an
interest payment.
A reverse repurchase agreement (RRP) is an act of buying securities with the intention of returning—
reselling—those same assets back in the future at a profit. This process is the opposite side of the coin
to the repurchase agreement. To the party selling the security with the agreement to buy it back, it is a
repurchase agreement. To the party buying the security and agreeing to sell it back, it is a reverse
repurchase agreement. The reverse repo is the final step in the repurchase agreement closing the
contract.
12. CDD
Customer Due Diligence or CDD, is the process where relevant information about the customer is
collected and evaluated for any potential risk for the organization or money laundering/terrorist
financing activities.
CDD is essential for KYC, and although these processes differ around the globe, they have a single
aim—to identify your customer and their activities. Then customer’s risk profile is assessed and
followed by basic Customer Due Diligence, Enhanced Due Diligence (EDD) or Simplified Due
Diligence (SDD)
The financial system processes millions of transactions every day so it is vital for your firm to ‘Know
Your Customer’. KYC or Customer Due Diligence (CDD) collates information about your customers
to assess the extent of any risk they pose to the firm. This doesn’t simply mean taking a copy of a
passport to prove identity, it means analysing the customer lifecycle from onboarding through to
recognising key changes over time and undertaking regular reviews.
13. IP and PEPS
a politically exposed person (PEP) is one who has been entrusted with a prominent public function.
A PEP generally presents a higher risk for potential involvement in bribery and corruption by virtue
